H&M COVER [HULL AND MACHINARY COVER]
HULL AND MACHINERY COVER:- Hull and machinery cover, commonly known as H&M cover insures against --- 1) Actual or total constructive loss of ship's hull, machinery or equipment 2) Accidental damage to hull, machinery or equipment 3) Liability against owner of other vessel with which ship collides, commonly known as collision liability. Normally collision liability is 3/4th of total liability but can be extended to 4/4th. 4) Liability for general average charges 5) Liability for salvage charges H&M policies are generally time policies, the maximum period of insurance usually being 12 months. Coverage for a vessel under H&M policy is written with a vessel value, which has been agreed upon between the shipowner and the policy underwriter. But it is not necessary to insure property for its full value, and some assureds, in return for a lower premium, prefers to carry part of the risk the...